House Study Bill 21 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON JUDICIARY BILL BY CHAIRPERSON BALTIMORE) A BILL FOR An Act relating to statute-of-repose periods for improvements 1 to real property involving residential and nonresidential 2 construction and including applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1102YC (3) 86 jh/rj

H.F. _____ Section 1. Section 614.1, subsection 11, Code 2015, is 1 amended to read as follows: 2 11. Improvements to real property. 3 a. Residential construction. In addition to limitations 4 contained elsewhere in this section , an action arising out of 5 the unsafe or defective condition of an improvement to real 6 property residential construction based on tort and implied 7 warranty and for contribution and indemnity, and founded on 8 injury to property, real or personal, or injury to the person 9 or wrongful death, shall not be brought more than fifteen years 10 after the date on which occurred the act or omission of the 11 defendant alleged in the action to have been the cause of the 12 injury or death. However, this subsection paragraph does not 13 bar an action against a person solely in the person’s capacity 14 as an owner, occupant, or operator of an improvement to real 15 property. 16 b. Nonresidential construction. In addition to limitations 17 contained elsewhere in this section, an action arising out 18 of the unsafe or defective condition of an improvement to 19 nonresidential construction based on tort and implied warranty 20 and for contribution and indemnity, and founded on injury to 21 property, real or personal, or injury to the person or wrongful 22 death, shall not be brought more than ten years after the date 23 on which occurred the act or omission of the defendant alleged 24 in the action to have been the cause of the injury or death. 25 However, this paragraph does not bar an action against a person 26 solely in the person’s capacity as an owner, occupant, or 27 operator of an improvement to real property. 28 c. Definitions. For purposes of this subsection, 29 “residential construction” means the same as defined in 30 section 572.1. “ Nonresidential construction” means all other 31 construction that is not residential construction. 32 Sec. 2. APPLICABILITY. This Act does not apply to 33 residential-construction or nonresidential-construction 34 projects in existence prior to the effective date of this Act. 35 -1- LSB 1102YC (3) 86 jh/rj 1/ 2

H.F. _____ EXPLANATION 1 The inclusion of this explanation does not constitute agreement with 2 the explanation’s substance by the members of the general assembly. 3 This bill relates to the statute-of-repose period in a 4 case arising out of the unsafe or defective condition of an 5 improvement to nonresidential construction. 6 Under current law, a case arising out of the unsafe or 7 defective condition of an improvement to real property, whether 8 residential or nonresidential construction, is subject to 9 a 15-year statute of repose. Such cases are based upon an 10 injury to property or an injury or death of a person. The bill 11 reduces the period of the statute of repose for cases relating 12 to nonresidential construction from 15 years to 10 years. The 13 statute-of-repose period for cases relating to residential 14 construction remains 15 years. 15 The bill defines “residential construction” by cross 16 reference to the definition of that term contained in Code 17 chapter 572, which relates to mechanic’s liens. Code section 18 572.1 defines “residential construction” as construction on 19 single-family or two-family dwellings occupied or used, or 20 intended to be occupied or used, primarily for residential 21 purposes. The bill defines “nonresidential construction” as 22 any construction that is not residential construction. 23 A statute-of-repose period differs from a 24 statute-of-limitations period in that a statute of repose 25 establishes a time period after which a lawsuit based upon 26 negligence in an improvement to real property cannot be filed 27 regardless of whether an injury to a person or to property has 28 occurred. A statute-of-limitations period begins at the date 29 of the injury or upon discovery of the deficiency. 30 The bill does not reduce the statute of repose for 31 residential and nonresidential construction projects in 32 existence prior to the effective date of the Act. 33 -2- LSB 1102YC (3) 86 jh/rj 2/ 2